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ITS A TRAP!!! BC Government Offers First-Time Buyers Down Payment Loans!!

1,213 views · Published 16 December 2016 · 6:50 · Indexed 31 October 2026

Channel: Mike Martins · 2016 · News & Politics

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In this December 2016 video, I’m looking at breaking news out of British Columbia: the provincial government has announced a new program designed to help first-time home buyers get into the housing market by assisting them with their down payment.

Under the program announced by Premier Christy Clark, qualifying first-time buyers could receive a government-backed loan of up to $37,500, matching their own down-payment savings on a home priced at $750,000 or less. The loan would run for 25 years, with no interest and no principal payments required for the first five years.

On the surface, this sounds like a major helping hand for people struggling to save enough money to enter BC's extremely expensive housing market. But I have questions.

If housing prices are already stretched beyond what many working families can afford, does providing additional borrowed money actually solve the affordability problem? Or does it simply allow buyers to take on even more leverage and keep expensive properties moving?

I'm also questioning the government's language about becoming a "partner" in helping people purchase their first home. Buyers already have a first mortgage, and now potentially another loan registered against the property. What happens if housing prices decline after someone purchases? What happens after the five-year interest-free period ends and payments begin?

This comes at an especially interesting moment because Vancouver's housing market has already shown signs of cooling following the introduction of BC's 15% foreign-buyer tax. I've been following declining sales, price reductions and the possibility of a larger correction throughout this series.

Is this program simply giving ordinary British Columbians a better opportunity to become homeowners, or is the government trying to bring another group of buyers into the market at a time when demand is weakening?

This is an opinion and discussion video based on information available in December 2016. Let me know what you think: Would you take the government down-payment loan, or would you wait and see where housing prices go?

#vancouverhousing  #BCHousing #housingbubble  #vancouverrealestate  #firsttimehomebuyer  #housingcrisis  #canadianhousing  #realestate  mikemartins

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